Curve.Finance (CRV) Crypto Asset Statement

PLEASE READ THIS CAREFULLY. BY PROCEEDING TO TRANSACT IN CRV, YOU ACKNOWLEDGE AND ACCEPT THE STATEMENTS SET OUT BELOW.

About this Summary

Ndax Canada Inc. (“Ndax”, “we” and “our”) believes that our users should understand the crypto assets that they are able to trade and stake using our crypto trading platform (the “Platform”). One of the crypto assets we offer on the Platform is CRV. We created this summary to help you understand the basics of CRV as well as some of the risks involved in trading in CRV. While we tried to describe the key features of CRV, this summary isn’t meant to tell you everything you’d want to know before investing in CRV. You should also do your own research on CRV to make sure you are comfortable investing in it.

Description of CRV

History of CRV

Curve Finance launched in January 2020 as a specialized automated-market-maker (AMM) for like-pegged assets such as stablecoins and liquid-staking tokens. To decentralize governance and direct future protocol emissions, the team introduced the Curve DAO Token (CRV) on 13 August 2020, after a community member had prematurely deployed the token’s Ethereum contract; the official team subsequently assumed control of that contract and began distributing CRV according to the intended schedule. CRV launched with an initial circulating supply of roughly 1.3 billion tokens and targets a maximum supply of about 3.03 billion, released through a gradually declining inflation schedule that decreases every year until full emission in circa 2028. Key milestones since launch include the introduction of the “vote-escrow” model (veCRV) in 2020 for long-term locking and governance, and the system of gauge-weight voting that lets veCRV holders direct where new CRV rewards are emitted across Curve liquidity pools.

What is CRV used for

CRV is the native utility token of Curve Finance: when users lock it into the protocol’s vote-escrow contract they receive veCRV, and that veCRV balance dictates their influence over Curve DAO governance votes, lets them boost the CRV rewards earned by any liquidity they supply to Curve’s pools, and entitles them to a proportional share of the platform’s trading-fee revenues; even without locking, CRV can still be traded or deposited into external yield strategies that integrate Curve’s gauge system, making the token central to both directing the protocol’s future and enhancing returns for active liquidity providers.

How CRV works

CRV is an ERC-20 token on Ethereum. New CRV enters circulation via liquidity-mining “gauges”; each week, veCRV holders vote on gauge weights to decide how the forthcoming weekly CRV inflation is apportioned across pools. Users may lock their CRV in a vote-escrow contract for 1 week to 4 years; linearly decaying to zero as the lock approaches expiry. This mechanism aligns long-term governance with liquidity incentives and reduces circulating supply. Gauge smart-contracts automatically mint CRV to eligible LPs each block, while a 50 bps trading fee is charged on most swaps; half of those fees are converted to 3pool LP tokens and distributed weekly to veCRV holders, creating a fly-wheel between liquidity depth, trading volume and token demand.

Risks

Before entering into an agreement (a “Crypto Contract”) with Ndax to buy or sell any crypto assets through the Platform, it is important to understand the risks. This overview is a starting point for you to perform your own research prior to investing in a crypto asset.

Like other crypto assets, there are some general risks associated with investing in CRV. Each of these risks are described in more detail in the Risk Statement provided to you at the time that you open your account with us and is also available online on the Ndax website and app. You should review the Risk Statement.

Specific risks that are unique to the Curve DAO Token and its ecosystem. These risks are in addition to the general crypto-asset risks outlined in our Risk Statement:

Smart-contract vulnerability and exploit history – Curve’s pools and gauge contracts are complex Solidity code bases that have faced critical bugs in the past. In July 2023 a re-entrancy exploit across several factory pools led to losses of roughly USD 45 million before emergency measures were triggered, demonstrating that undiscovered flaws can still materially impact token-holders and liquidity providers.
Governance-power concentration & “bribe” dynamics – Protocol changes (e.g., gauge weight additions, fee-parameter shifts) are decided by veCRV voting. Because veCRV power is proportional to the size × length of token locks, influence tends to concentrate among a handful of large lockers and aggregated voting platforms (Convex, Yearn, etc.). This creates a persistent risk that proposals could be steered in favour of dominant stakeholders or external “bribe” campaigns rather than the wider community.
Inflationary emissions and dilution pressure – CRV follows a steadily declining—but still significant—weekly emission schedule that will continue until 2028. While emissions incentivise liquidity, they also introduce continual sell-side supply; holders who do not lock or stake may experience dilution of economic value over time.
Stable-pool imbalance and de-peg exposure – Curve’s AMM is optimised for like-pegged assets (e.g., stablecoins). Severe market stress or large single-sided withdrawals can unbalance a pool, causing a constituent stablecoin to trade materially away from its peg and exposing LPs and CRV holders (via treasury fees) to loss.

These factors, combined with broader DeFi regulatory uncertainty and high on-chain leverage, mean CRV may exhibit elevated price volatility and operational risk compared with more established crypto-assets. Prospective investors should review these points carefully and consider whether participation in Curve’s ecosystem aligns with their risk tolerance and investment objectives.

While we have tried to describe the key risks associated with CRV here and in our Risk Statement, we emphasize that this Crypto Asset Statement is not exhaustive of all of the risks associated with trading in CRV. You should also do your own research on CRV to make sure you are comfortable investing in such a crypto asset.

Regulatory Information

Ndax is a registered investment dealer under securities legislation in all provinces and territories of Canada, and is a member of the Canadian Investment Regulatory Organization (CIRO) and of the Canadian Investor Protection Fund (CIPF). Ndax is offering Crypto Contracts in accordance with the terms of the Decision Document dated December 19, 2024 that we entered into with the Canadian securities regulators. Any fiat currency held in user's accounts are protected by the CIPF's Investment Dealer Fund in accordance with its Coverage Policy. However, CIPF coverage does not extend to any virtual assets held in user's accounts. These assets are not eligible for deposit insurance or any protection from the Canada Deposit Insurance Corporation (CDIC) or CIPF.

The statutory rights of action for damages and the right of rescission in the securities legislation of each province and territory of Canada would not apply in respect of a misrepresentation in this Crypto Asset Statement.

Prior to offering a Crypto Contract on CRV, Ndax assesses whether CRV is a security and/or a derivative under the securities and derivatives laws of Canada. Ndax’s assessment includes a review of the history of CRV (such as how it was created and its governance structure), its characteristics, its market capitalization and any regulatory concern regarding CRV. Based on its assessment, Ndax concluded that CRV is not a security or a derivative. However, there is a risk that this conclusion could change in the future. In that case, Ndax may be required to halt or withdraw CRV from trading on the Platform and stop any future trading of Crypto Contracts based on CRV, and users holding CRV may be required to liquidate their positions, potentially at a significant loss. In this event, users holding positions in CRV will be notified via the Platform or other electronic means and advised of the options available to them and any applicable period to sell or withdraw their positions in CRV.

No Canadian securities regulatory authority has expressed an opinion about CRV, including an opinion that CRV is not itself a security and/or derivative.

Last Updated: 05/23/2025